San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1887-03-12
Cheap Money Needed Badly.
Editor LIGHT:

Editor LIGHT:
II must be evident to all persons of
ordinary powers of observation. that
there Is nightmare weighing down
west Texas, and that the high rate of in
terest tsat is demarded for money con
stitutes this nightmare. Borrowers can
not pay 10. II aud 10 per cent. interest
without ultimately being ruined BY il,
from the simple fact thar it is impossible
for them to make that much on the sum
borrowed. Men, in order to briGge over
temporary difficulty, such as failure
to collect money due them, or to realize
on their stock on account of the poverty
OF their condition, may find il to their
interest 10 borrow money even at Is per
cent. interest, but this constitutes an
exceptional case. II the price of the
lands and cattle was steadily advancing
it might be safe to borrow money at a
nigh rate OF interest, so Ms TO derive the
full benefit Of he rise in prices, but I'M
happily this is not, at present, the con-
diIiOn Of affairs, at least in this meek OF
woods"
The high rate at which money ia lent.
deVOurs man substance, ats him out
of house and hOme-strips him to the
bone. 1t is bound to have just this eff
feet and none other, where the borrow
er fails to make as much on the sum bOr-
rowed As he pays to the lender. This
proposition is as plain as that two and
two make four.
Cheap money Is one Of the most ur-
gent needs OF West Texas. 1t would lu-
bricate the wheels of business, and pre-
vent any further skrinkage of values
"A contamination most dpvOutedly to
10 MI - A ~ II h.
and stock would directly, or Indirectly.
benefit every man in west Texas. Cheap
money would produce such rise In a
very brief space of time.
There Is no real or even apparent rea-
son why the rate of interest should be as
high as it is. The risk OF ultimate loss
is no greater here than 1t is in Ohio or
New York, upon money that Ia loahed
The security is every bit and grain rs
good, since not over twO-thir,s of the
value of the property mOrIgagPd il ever
lOAned-thus having an ample margin
for unforeseen contingencies.
In addition TO the ample character of
the security exacted, the borrower binds
himself 10 pay 10 per cent. for attorneys
lees, should the debt have to be collect
ed by process of law The statute of
Texas permits this kind of contract,
hut hardly any other state allow IL 10
be entered into. In view OF these nm
questionable and notorious facts, there
really is no reason for the b Oh rate of
interest thar obtains That it is disad-
vantageOus Is too clear to admit of dis
pute.
The rate of interest demanded by the
BuIlding and Loan associations Is also
too b go. believe they profess to make
loans nj ~ per cent; but MS they exact
monthly instaliments, they receive more
than that rate. Thi~ state of things has
been draw back upon the city, in this,
that the associations have received
money from poor men and women who
had TO tque, Re and pinch TO save it up.
and after all their Efforts. have been
forced 10 surrender their houses and lots.
A court Of equity should treat these
contracts with the Loan and Building
associations as mortgages and force
them to sell the houses and lots, and
pay any surplus, after satisfying tneir
claim, to the owners That would be
-imple justice TO both parties to the con-
tract
Inere is hardly q shadow OF a proba.
bility thar our domestic money lend, re-
will reduce tue rate OF interest so long
as they are able to obtain it. The
writer hsrbors no such expectation, nor
INDUCES any such hope. My object rs
10 induce capitalists in the north to
bring their superabundant money TO
West Texas and loan it ont at 8 per
cent.-which Is twice as much Rs they
get 10 the north. TONEY.